Company setup in Dubai from India: the process, and what Indian founders need

There is no "Indian founder" version of a Dubai company. The formation route depends on your activity and where you want to trade, not on your passport. The two main choices are the mainland, licensed by the emirate's economic department (the Department of Economy and Tourism in Dubai), and a free zone, licensed by that zone's authority. The mainland versus free zone guide compares them; the short version follows.

On the mainland, the UAE Government portal explains that Federal Decree-Law No. 26 of 2020, effective in early 2021 and later consolidated by Federal Decree-Law No. 32 of 2021, permits 100% foreign ownership and removed the requirement for a majority Emirati shareholder or a local agent for most activities. Activities of "strategic impact" are the exception, and a defined list of restricted activities (such as security and defence, certain telecom and banking activities, and commercial agencies) sits outside the general rule. Free zones have always offered 100% foreign ownership; the trade-off is that a free-zone company sells into the UAE mainland market through a licensed distributor or a mainland branch rather than directly.

1. Choose the activity. The UAE has more than 2,000 business activities; your activity sets your licence type (industrial, commercial, professional, tourism, agricultural or crafts).
2. Choose the legal form — commonly a limited liability company, which under the Commercial Companies Law can be a single-owner company.
3. Reserve the trade name with the economic department, following the naming rules (no offensive or religious names, name compatible with the activity).
4. Get initial approval. Foreign investors obtain the approval of the General Directorate of Residency and Foreigners' Affairs before initial approval; initial approval does not by itself let you trade.
5. Draft the Memorandum of Association and, where an activity still requires it, a service-agent agreement.
6. Secure premises. Every UAE business needs a physical address; in Dubai the tenancy is registered on Ejari.
7. Obtain any additional approvals from the relevant regulator, then collect the licence and pay within the stated period.

Free-zone formation is usually a shorter, more digital version of the same idea, run end-to-end by the zone authority. See free zones and, for one widely used option, IFZA.

Where India comes in is documents, not company structure.

Owning a company can support a residence visa. The investor and partner routes are covered on investor and partner visa; ICP states that an investor's contribution to the company must be at least AED 1,000,000 for the investor residence, and free-zone owner and partner visas are issued under each zone's quota rules tied to office size. A company also holds establishment cards — a MOHRE establishment card (Ta'qeem fee AED 406) and an ICP establishment card — before it can sponsor staff.

On tax, the UAE corporate tax is 0% on taxable income up to AED 375,000 and 9% above that; all businesses register for corporate tax. A qualifying free-zone company can benefit from 0% on its qualifying income. VAT is 5%, with mandatory registration once taxable supplies exceed AED 375,000. The corporate tax and VAT guide sets out the registration duties without giving tax advice.

Use the business setup finder to narrow mainland versus free zone for your activity, then get your India-issued certificates into the attestation chain if any are needed. If you want a person to check the structure before you commit, ask for a review below.